Regional Industrial Market | Overview

Key Trends

  • The regional vacancy rate has been holding at 6.4% at the end of the second quarter of 2018.
  • Year-to-date absorption approached 7.0 million square feet, below last year’s six-month total of 11.5 million square feet.
  • Asking rents increased by 3% following a 4% increase in 2017.
  • Construction deliveries increased during the second quarter, boosted by two 1.0-million-square-foot buildings.
  • Investment activity was up sharply in the second quarter after a slow start to the year.

The first six months of 2018 lagged behind the mid-year results of the previous two years in terms of absorption and construction completions. There was a strong pipeline of requirements for existing and new speculative construction and 5.0 million square feet of build-to-suit projects scheduled for completion in the third and fourth quarters, all indicating stronger second half absorption.